Red Paper – April 2017 Reflation, Rising Rates and Real Estate

26 Apr, 2017
  • EXECUTIVE SUMMARY


    • The nascent signs of a new economic pattern marked by higher interest rates and increased inflation has begun to show. This
    “reflation” environment will have direct implication for U.S. property markets and the economy as a whole.


    • Commercial property has long been considered to be an asset class that provides some degree of protection from the pernicious
    effects of inflation, and historically, in rising interest rate environments, investors have been willing to allow the yield spread to
    compress for some period of time.


    • Property sector performance is likely to reflect underlying property market fundamentals more than capital market changes as long as
    the economic and property market fundamentals do not change significantly.

    Red Paper – April 2017 Reflation, Rising Rates and Real EstatePDF
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Amelie Delaunay
Senior Director, Research & Professional Standards